I've noticed that many beginners in crypto often overlook one of the most reliable technical analysis patterns. It's the pattern that looks like the letter W on a chart — known as the double bottom.

What is it about? When the price drops, it creates the first low, then bounces up slightly, and then drops again to roughly the same level. This structure of two lows with a peak in between forms a W shape. This configuration signals that the bears are losing strength and the bulls are starting to take control. It’s a moment when the downtrend may reverse into an uptrend.

How to spot it? First, ensure that a downtrend is actually in progress. Then, check that the two lows are approximately at the same level — the difference should not exceed 5-10%. Between them, a small peak forms, called the neckline. This is a key level. When the price breaks above this neckline, it’s a buy signal.

An important factor is volume. When the price returns to the second low, the volume should be higher than during the first low. This indicates that buyers are truly active. If volume increases and the price breaks the neckline, you can open a long position.

Where to set the stop-loss? Just below the resistance level. The target price can be calculated by adding the height of the entire pattern — the distance from the neckline to the lowest low — to the breakout point. This provides a good risk-to-reward ratio.

This pattern works on any timeframe — from 5-minute charts to daily charts. On larger timeframes, it takes longer to form, but the potential profit is usually higher. You can also use confirming indicators like RSI or MACD to avoid false breakouts.

Of course, there are downsides. Sometimes the price breaks the neckline but then falls back — this is called a false breakout. Therefore, additional confirmation through volume or indicators is always recommended. RSI can help spot divergence, indicating weakening of the downtrend, while MACD confirms a change in momentum when its lines cross the zero line.

That’s how this pattern works. Currently, BTC is trading around $67.04K, BNB around $593.70, TRB around $14.68. You can try to find such W-patterns on different asset charts and practice recognizing them. Over time, it will become second nature, and you’ll start seeing these formations automatically.